On Monday, September 24, the foreign policy chief of European Union, Federica Mogherini said that EU will create new payment system to preserve oil trade and other businesses with Iran amid US sanctions.
Mogherini’s announcement came after her meeting with foreign ministers of Britain, France, Germany, Russia, China and Iran on the sidelines of United Nations General Assembly in New York.
After the meeting Mogherini told the reporters, “In practical terms this will mean that EU member states will set up a legal entity to facilitate legitimate financial transactions with Iran and this will allow European companies to continue to trade with Iran in accordance with European Union law and could be open to other partners in the world”.
“In practical terms this will mean that EU member states will set up a legal entity to facilitate legitimate financial transactions with Iran.” https://t.co/ZJJk5qyvF2
— Al Jazeera English (@AJEnglish) September 25, 2018
Also, Europe, Russia and China said in a joint statement, “The Special Purpose Vehicle will assist and reassure economic operators pursuing legitimate business with Iran”.
It further added, “The six countries (Including Iran) signatory to the 2015 nuclear agreement reconfirmed their commitment to its full and effective implementation in good faith and in a constructive atmosphere”.
US President Donald Trump withdrew from Iran Nuclear deal on May 8, 2018 and announced to reimpose the sanctions on Iran that will be in full implementation from November 4, 2018 and warned to sanction the countries and firms that will continue to trade with Iran after November 4, 2018.
Al Jazeera’s Shihab Rattansi said, “The new entity will act as a clearing house, a middleman, so to speak, between Europeans and Iranians as they try to do business”.
He said, “If the Italians want to buy some Iranian oil, they will wire the money to this entity which will then then handle the financial transactions from there and vice versa”.
He added, “There will be no involvement of commercial bank and central bank, both of whom are terrified at the prospect of US retribution if they are seen to be going against US sanction”.